Amended in Assembly May 1, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 837

Introduced by Assembly Member Campos

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(Coauthors: Assembly Members Fong and Fox)

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February 21, 2013

An act to add Section 12096.4.9 to the Government Code, relating to economic development.

LEGISLATIVE COUNSEL’S DIGEST

AB 837, as amended, Campos. Economic development programs: reporting.

The Economic Revitalization Act establishes the Governor’s Office of Business and Economic Development, also known as “GO-Biz,” to serve the Governor as the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth.

This bill would require begin delete an administrative lead center, end delete begin insert the State Chair of the California Small Business Development Center Leadership Council, established end insert under a begin delete specified end delete federal program, to report begin insert specific information end insert to GO-Biz begin delete and the Legislature for end delete begin insert relating to end insert any year begin insert that end insert state funds are appropriated to support begin insert an Administrative Lead Center under end insert that federal program begin delete , and make legislative findings and declarations in this regard. This bill end delete begin insert , and end insert would begin delete also end delete begin insert , in turn, end insert require the director of GO-Biz to begin insert provide that report to the Legislature and end insert post begin delete a end delete begin insert the end insert report begin delete required under these provisions end delete on the begin delete office’s end delete begin insert GO-Biz end insert Internet Web site. begin insert This bill would also require the state chair, as a condition of accepting state funds, to allow access to other information about the program under certain conditions. This bill would make legislative findings and declarations in this regard. end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

The Legislature finds and declares all of the
following:

(a) The California Small Business Development Center Program,
a part of the federal Small Business Development Center Program,
plays a primary role in providing technical assistance to the state’s
small businesses and provides verified positive outcomes to the
state’s economy.

(b) Within the state, the California Small Business Development
Center Program is administered through six Regional Small
Business Development Center Networks, as follows: Northern
California, Northeastern California, Central California, Orange
County/Inland Empire, Los Angeles, and San Diego. Each regional
network is managed by an Administrative Lead Center, designated
by the federal Small Business Administration through a cooperative
agreement, and affiliated with one begin delete of the following end delete public
begin delete institutions end delete begin insert institution end insert of higher education begin delete : California State
University, Humboldt; California State University, Chico;
University of California, Merced; Long Beach Community College
District; California State University, Fullerton; and Southwestern
Community College District end delete . The centers are responsible for
securing required one-to-one matching funds to draw down federal
appropriations, according to a population-based formula determined
by the United States Census, and the regional networks are held
accountable for their productivity and required to submit regular
performance reports to the Office of Small Business Development
Centers, within the federal Small Business Administration.

(c) Throughout the six regional networks there are more than
30 full-time Small Business Development Centers, with multiple
additional outreach locations serving small businesses in this state.
These centers provide assistance to existing businesses in the areas
of financing, government contracting, business planning and
management, marketing, international trade, energy efficiency and
sustainability, and disaster preparedness. The centers also provide
expert advice to technology companies in the areas of business
and financial plan preparation, angel and venture capital
presentation preparation, funding strategies, product positioning,
market launch strategies, applications for federal grants, technology
transfers with research universities, intellectual property issues,
and strategic partnerships. The centers work in collaboration with
various partners to provide these services, including, but not limited
to, begin delete community colleges, grantees of the federal Minority Business
Development Agency, end delete the federal Small Business Administration,
begin insert the United States Department of Commerce, the United States
Department of Agriculture, the Governor’s Office of Business and
Economic Development, the California Innovation Hub Program, end insert
the California Community begin delete Colleges Economic and Workforce
Development Program, end delete begin insert Colleges, the California State University,
the University of California, end insert local workforce investment boards,
begin insert economic developers, cities, counties, end insert and chambers of commerce.

(d) The California Small Business Development Center
Leadership Council is comprised of the directors of the six
begin delete Regional Small Business Development Center Networks. end delete
begin insert Administrative Lead Centers that coordinate the regional networks
of small business development centers. end insert The council is the statewide
entity tasked with negotiating partnerships on behalf of the
California Small Business Development Center Program,
leveraging operational and technical assistance for best practices
across the six regions, and working with the state government to
maximize the economic impact of the federal Small Business
Development Center Program within the state.

SEC. 2.  

Section 12096.4.9 is added to the Government Code,
to read:

12096.4.9.  

(a) On or before August 30 following any year that
state funds are appropriated to begin insert an Administrative Lead Center for
the support of end insert the California Small Business Development Center
Program, the begin delete Administrative Lead Center that oversees the
Regional Small Business Development Center Network that
received that state funding shall end delete begin insert end insert begin insert State Chair of the California Small
Business Development Center Leadership Council shall provide
a written end insert report to the office begin delete and the Legislature, in compliance
with Section 9795, on the activities and performance goals of the
California Small Business Development Center Program in that
region. An Administrative Lead Center accepts this reporting
requirement as a condition of receiving the state funds described
in this subdivision. end delete begin insert consistent with the requirements of this section. end insert

begin insert

(b) Each Administrative Lead Center accepts the reporting
requirement in this section as a condition of receiving state funds.
As a further condition for receiving state funds, the State Chair of
the California Small Business Development Center Leadership
Council shall arrange to provide the office with access to similar
information, in both a similar timeframe and format, that an
Administrative Lead Center may provide to the federal Small
Business Administration on client services and the economic impact
of the California Small Business Development Center Program.
Information provided to the office shall meet applicable privacy
standards and shall not disclose the name of an individual business.

end insert begin delete

(b)

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begin insert ( end insert begin insert c) end insert  A report prepared pursuant to subdivision (a) shall include,
but not be limited to, all of the following data:

(1) Number of businesses assisted.

(2) Number of employees employed by those businesses begin insert at the
time those businesses were assisted end insert .

(3) Number of jobs created.

(4) Number of jobs retained.

(5)  begin delete Number end delete begin insert Estimated amount end insert of state tax dollars generated
from those businesses.

(6) Industry sectors of the businesses assisted begin insert , as reported by
the assisted businesses end insert .

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(7) Increase in sales reported by businesses assisted as a result
of the program.

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(8) The amount of capitol infusion, in both debt and equity,
obtained by assisted businesses.

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(7)

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begin insert (9) end insert  Total amount of federal funds allocated to the region during
the reporting period.

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(c)

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begin insert ( end insert begin insert d) end insert  The director shall begin insert submit a copy of the report end insert begin insert required
pursuant to subdivision (a) to the Legislature in compliance with
Section 9795 and end insert post the report on the office’s Internet Web site
no later than 30 days after the begin delete report is transmitted to the Governor
and Legislature end delete begin insert office receives the report end insert .